Office Buildout Costs in 2024: Why Office Leasing Takes Longer and Costs More
Overview
The office market is still in the early stages of a long-term transformation. While demand has become more selective, the bigger shift for tenants in 2024 isn’t just where they lease—it’s how long the process takes and how much it costs.
FEATURED
Office Buildout Costs in 2024: Why Office Leasing Takes Longer and Costs More
Compared to a decade ago, office buildouts are more expensive, lease negotiations are more complex, and timelines have stretched significantly. These changes are reshaping how tenants should approach leasing decisions today.
The Winners in the Current Office Market
Not all office buildings are being affected equally. Class AA (trophy) office properties and most healthcare real estate assets continue to outperform the broader market.
These landlords understand their positioning and have the financial capacity to:
Fund substantial tenant improvement packages
Absorb higher construction costs
Attract tenants competing for quality space
As a result, while tenants may not always secure dramatic rent concessions at these properties, they often benefit from landlords’ ability to fund costly buildouts—an increasingly valuable advantage in today’s environment.
How Office Buildout Costs Have Changed Since 2013
One of the most significant changes in office leasing is the escalation of construction costs.
Based on historical benchmarks compared to today:
Paint and carpet costs have risen from roughly $5/SF to $15–$20/SF
Full office buildouts have increased from $35–$45/SF to $60–$100+/SF
Specialty items such as glass entry doors now cost more than double prior pricing
These increases make early planning and disciplined negotiation more important than ever for tenants considering a move or renewal.
Why Office Leasing Timelines Are Much Longer Today
In addition to higher costs, the office leasing timeline has expanded dramatically.
What once took approximately 4 months can now take 16–18 months from initial planning through move-in. Contributing factors include:
Extended design and pricing phases
Increased lender involvement
More complex negotiations
Longer construction timelines
For tenants, this means delays are costly and rushed decisions carry significantly more risk than they did ten years ago.
Market Signal to Watch: Spec Suites and Speed to Occupancy
To counteract longer leasing cycles, some landlords are delivering speculative suites (spec suites)—move-in-ready offices designed to shorten decision timelines.
These spaces typically include:
Private offices
Conference rooms
Break rooms
Open work areas
Spec suites allow tenants to bypass lengthy construction processes, but availability remains limited and competition for well-designed spaces can be strong.
What Office Tenants Should Be Thinking About in 2024
The takeaway for tenants is clear: start earlier than you think you need to.
With costs rising, timelines expanding, and negotiations becoming more complex, tenants who plan ahead gain meaningful advantages. Early engagement allows time to:
Secure better contractor pricing
Negotiate stronger economic terms
Reduce execution risk
Maintain flexibility throughout the process
Office leasing in 2024 requires patience, preparation, and experienced guidance—but for tenants who approach it strategically, opportunities still exist.
Written by:
Graham Perry
Senior Director specializing in tenant representation, office leasing strategy, and healthcare real estate transactions.
Featured Stories
Featured Clients
Sign Up for Graham's Monthly Letter
Sign up with your email address to receive news and updates.